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June 3, 2024

Highlights of Implementation Plan for Vietnam’s Latest Power Development Plan

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Nearly a year after Vietnam’s issuance of its National Power Development Plan for 2021-2030, with a vision to 2050 (“PDP VIII”), the Prime Minister issued Decision No. 262/QD-TTg dated April 1, 2024, approving the Implementation Plan for PDP VIII (“Implementation Plan”). Among other contents, the Implementation Plan sets forth the list of prioritized power source projects through 2030, and the capacity of renewable energy sources through 2030, as detailed below.

Prioritized Power Source Projects through 2030

The Implementation Plan lists out six types of power source projects prioritized for development through 2023 according to the capacity approved under PDP VIII. They include:

  • Domestic gas-fired power (14,930 MW)
  • LNG-fired power (22,400 MW)
  • Coal-fired power (30,127 MW)
  • Cogeneration power using residual heat, blast furnace gas, and by-products of technological lines in industrial facilities (2,700 MW)
  • Hydropower (29,346 MW)
  • Pumped storage hydropower (2,400 MW)

With respect to each type, the Implementation Plan provides details of projects by location and their operational progress. Such information is set out in Schedule III of the Implementation Plan.

For power source projects not included in this list, the provincial People’s Committees will consult with the Ministry of Industry and Trade (“MOIT”) and relevant agencies on compliance with the planning prior to appraisal and issuance of in-principle investment approval.

Renewable Energy Projects through 2030

The Implementation Plan allocates the capacity of the following renewable energy sources by locality/region:

  • Offshore wind power (6,000 MW)
  • Onshore wind power (21,880 MW)
  • Hydroelectric power (29,346 MW)
  • Biomass electricity (1,088 MW)
  • Electricity produced from waste (1,182 MW)
  • Rooftop solar power for self-production and self-consumption (2,600 MW)
  • Battery storage (300 MW)

With respect to each renewable energy source, the Implementation Plan provides a list of certain renewable energy projects through 2030, including the expected life cycle of the projects, and the allocated capacity for various localities/regions. For the remaining capacity, the provincial People’s Committees were tasked to propose a list of additional projects, and the MOIT was to finalize and submit it to the Prime Minister for approval before April 30, 2024. To date, however, we are not aware of any decision of the Prime Minister approving additional projects to meet the capacity of renewable energy sources allocated under the Implementation Plan.

Other Notes

The Implementation Plan sets out that from 2023 to 2025, the authorities will prioritize developing the following legal framework:

  • Pricing framework for various types of power sources. The purpose is to complete the electricity price management mechanism according to the market mechanism with State regulation.
  • Direct electricity trading mechanism.
  • Mechanism to encourage the development of distributed/rooftop solar power projects for self-production and self-consumption purposes.
  • Electricity Law (amended).
  • Law on Economical and Efficient Use of Energy (amended).
  • Mechanism to develop the carbon credit market.

The MOIT is responsible for promulgating transmission prices for transmission grid projects in the form of socialization investment to encourage the private sectors to invest in power grid infrastructure.

The Ministry of Planning and Investment is tasked with (i) proposing regulations on the authority to decide investment policies for offshore wind power projects, hydrogen/ammonia production projects using offshore wind power, and offshore wind power export projects and (ii) developing a public and transparent bidding mechanism to select investors to implement power projects and provide guidance to localities for implementation.

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